Date: This alert is based on information available as of June 20, 2019.
Subject: Enterprises licensed as a hotel by the Division of Hotels and Restaurants (H&R) and the Division of Alcoholic Beverages and Tobacco (ABT) which operate as or have a component that operates as a hostel.
Scope: Regulatory classifications and operational considerations for both H&R and ABT when hostel services are rendered.
Applicable Laws/rules: §§ 509.013, 561.20(2)(a), Rule 61A-3.043
Summary: Recently the Division of Hotels and Restaurants (H&R) refused to license an establishment as a hotel based on the location holding itself out and in some ways operating as a hostel. The inability to obtain a hotel license from H&R results in the inability to obtain an alcoholic beverage hotel license which authorizes the sale of liquor for consumption on the premises in addition to package sales without having to purchase a full liquor license on the open market.
Steps which can be taken to lower the risk of regulatory pushback include:
- Using hotel in the DBA and excluding using hostel.
- Offering individual rooms for rent.
- Clarifying that group rooms can be rented individually for a specific rate if booked far enough in advance.
- Offering services such as maid service, access to phones and a lobby area with an on duty employee.
- Providing consistent hotel advertising both on site and online.
- When possible offer to have unoccupied individual single or double rooms inspected by H&R as opposed to multi bed units.
In the event this issue arises in the application or inspection process please notify us immediately.